Today, the Government ratified two intergovernmental agreements with the United Arab Emirates aimed at facilitating investments by UAE investors in two real estate projects in Montenegro. Additionally, they acknowledged the conclusions from the Ulcinj Municipal Assembly dated March 21, which emphasize that all investment initiatives in the municipality must align with sustainable development principles and environmental accountability, in accordance with Ulcinj Municipality’s planning and strategic documents.

This information was shared during a press conference following the Government session by Prime Minister Milojko Spajić and Vice President Nik Đeljošaj.

Spajić indicated that the agreement with the UAE will be submitted for parliamentary approval without objection, and prior discussions will be held with all parliamentary factions to address any concerns. Agreements validated by the Parliament as laws hold the authority of lex specialis law and take precedence over domestic laws in the event of disputes.

The Prime Minister noted that the agreements and Ulcinj Municipal Assembly’s conclusions received unanimous support from all Government members. They instructed all ministries to comply with the conclusions of the Ulcinj Municipal Assembly and to implement these four conditions established by the residents of Ulcinj in future municipalities.

On March 21, the Ulcinj Municipal Council established four guiding principles for future investment projects: 1. Sustainability and long-term development – All investments must adhere to sustainable development principles and respect the planning and strategic frameworks of Ulcinj and Montenegro, ensuring economic, ecological, and social sustainability; 2. Natural resources preservation – Projects should align with ecological responsibility principles, preserving natural resources and protecting the environment; 3. Transparency and inclusivity – The investment approval and implementation process must be transparent, involving the local community and professional stakeholders; 4. Demographic structure protection – Given Ulcinj’s unique demographic composition, with an ethnic minority as the majority, investments must not cause demographic changes that could undermine the municipality’s cultural, ethnic, or social identity.

The agreement with the UAE specifies that the country will select an investor for two real estate projects located in southern and northern Montenegro, and as asserted, guarantee their execution.

Spajić indicated that upon the Parliament’s approval of the agreement, negotiations with the UAE and interested investors are expected. Although the investor selection process is not yet clear, there have been multiple meetings with UAE businessman Mohamed Alabar, who has proposed a project to develop this area into a significant city, investing 35 billion euros, and has sought a 99-year lease on a large beach.

According to Spajić, this investor is evaluating two additional locations for similar investments, one in a country with access to the Atlantic Ocean and another in the Mediterranean region.

He emphasized the need for all parliamentary groups and local authorities to responsibly endorse this project, to avoid explaining to future generations how they missed out on a 35 billion investment opportunity.

The Prime Minister also assured that all current tenants and stakeholders in Ulcinj’s tourism industry would have the opportunity to collaborate with the new investor and participate in the project as managers of beaches, hotels, and other businesses.

Additionally, Spajić expressed no opposition to the Constitutional Court reviewing the constitutionality and legality of these contracts, a move advocated by President Jakov Milatović.

He also announced the forthcoming establishment of new interstate agreements related to additional investments, including one that will soon be made with the United States.

Đeljošaj expressed his satisfaction with the unanimous acceptance of the Ulcinj Municipal Assembly’s conclusions, asserting that the project will be implemented through partnership and that disagreements have been resolved. It was also agreed that no project in Ulcinj will move forward without the Ulcinj Municipal Assembly’s consent.

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